News Update

EGCO Group Achieves Half Year Target, Expands Into Fuel Infrastructure and Smart Energy Solution Businesses

26 August 2020

Achieving strong performance target for the first half of 2020, Electricity Generating Public Company Limited or EGCO Group announced interim dividend payment of 3 baht per share. The Company will next move on to invest in related upstream and downstream businesses, including the fuel and other infrastructure and the Smart Energy Solution, aiming to strengthen sustainable future growth.

 

Mr. Thepparat Theppitak, EGCO Group’s President, said, “Our operations progressed well as planned in the first half of 2020. We have officially expanded our investment and firmly set our footstep in Taiwan through stake acquisition in the 640-MW Yunlin offshore windfarm. This move has also increased EGCO Group’s renewable energy portfolio.”

 

EGCO Group’s operating performance in Q2/2020 ending 30 June 2020 showed net profit of 5,075 million, an increase of 1,127 million baht or 29 percent higher than Q2/2019. The significant increase was contributed mainly by foreign exchange gain. When considering the first six months of 2020, the Company posted 4,662 million baht net profit, 3,035 million baht or 39 percent lower year on year. However, EGCO Group continues to be financially strong considering debt to equity ratio of only 1.19. Based on such operating performance, EGCO Group’s Board of Directors has resolved to pay the interim dividend for the first six-month period at 3 baht per share on 17 September 2020.

 

For the 4 projects under construction ending 30 June 2020, EGCO Group has seen good progress in all projects, which includes 3 power plants and one related business.The “Gangdong Fuel Cell Project” in South Korea has achieved 98 percent completion and is expected to start commercial operation in Q4/2020. The “Nam Theun 1 Hydropower Project” in Lao PDR has been 74 percent completed and is expected to commence commercial operation in Q2/2022. The “Yunlin Offshore Windfarm” in Taiwan has been 48 percent completed and is planned to start commercial operation in Q3/2021. Meanwhile, the extension of petroleum pipeline system in northeastern Thailand, which is EGCO Group’s energy-related business, has been 43 percent completed and is expected to begin to operate in Q4/2021.

 

In terms of investment direction, Mr. Thepparat said, “EGCO Group intends to expand our scope of business both in energy generation and services. Electricity generating, including fossil and renewable energy power plants, continues to be our core business. We are open about investment locations, both in Thailand and overseas. We are looking for new opportunity to invest in energy-related businesses, such as the fuel and other infrastructure business. The focus area will be fuel infrastructure, which is the upstream business that increase value of our core business activity. Part of this fuel and other infrastructure is our petroleum pipeline system extension in the northeast of Thailand. Another area of interest is the Smart Energy Solution business as we aim to become a provider of comprehensive energy innovation services. Under this business group, we have two major developing projects. One is to develop the “EGCO Rayong Industrial Estate” into Smart Industrial Estate and we are working on the Environment Impact Assessment (EIA) which is scheduled for completion within 2020. The other is “Solar Solution Provider” project which we are discussing with industrial customers and commercial building owners.”

 

“EGCO Group will continue to strengthen electricity generating business, which is our main expertise. We will manage our power plant portfolio through the use of various source of energy, including natural gas, coals, biomass, hydro power, solar power, wind power, geothermal power and fuel cells. At the same time, the Company will expand our business into energy-related businesses, both upstream and downstream. This will increase our business value and support overall business operations. In the end, all our main business activities and new investment in related business will bring us sustainable growth in the future,” said Mr. Thepparat.

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